Section 74 - Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilful misstatement or suppression of facts.

Section 74 of Karnataka GST Act: Addressing Tax Evasion Due to Fraud, Misstatement, or Suppression of Facts

Section 74 of the Karnataka Goods and Services Tax Act, 2017, addresses situations where tax has not been paid, short paid, erroneously refunded, or input tax credit wrongly availed due to fraud, willful misstatement, or suppression of facts. The proper officer must notify the liable party to show cause for non-payment and demand payment with interest and penalties. Notices must be issued six months before the statutory time limit. If the taxpayer pays the tax, interest, and a reduced penalty before receiving a notice, further proceedings are halted. The officer must determine dues within five years, and payment within 30 days of notice or order may conclude proceedings.